Mercedes-Benz said Thursday that it will add a “core segment” vehicle line to its Tuscaloosa, Alabama plant by 2027. The factory is currently manufacturing SUVs, and the company did not specify which models to be added.
The move follows President Trump's rise in tariffs on steel, aluminum and foreign-made auto parts. The president says he is gearing up to boost America's manufacturing.
“By localizing Tuscaloosa's core segment model, we are even closer to our US customers and strengthening our relationship with the North American market, where Mercedes-Benz vehicle range, including GLE and GLS models, has its roots.” I said in the release.
On Monday, the Trump administration said it would allow carmakers to apply for a 15% price offset in the first year of tariffs and a 10% offset in their second year, in hopes of pushing for domestic production of cars.
25% tariff on imported automobiles and automobile parts It is expected to come into effect Saturday.
Mercedes-Benz and others have been listening to the White House warnings about rising costs for foreign auto parts production. BMW, Stellantis, Toyota, Kia, Honda and Hyundai are planning to move more vehicles to the US following the release of the White House.
“Tuscaloosa has been an important hub for Mercedes-Benz vehicles for nearly 30 years, and bringing more models to Alabama as part of a strategy to deepen our commitment to the US, the market that has been our home for over a century.
The company said that more than 4.5 million vehicles have left the Tuscaloosa plant since 1997, and that around 260,000 vehicles have been off the line in 2024 alone. The Tuscaloosa plant includes EQE SUVs, EQS SUVs and Mercedes-Maybach EQS SUVs for all global markets, as well as GLE, GLS, GLE Coupe and Mercedes Maybach GLS.
